Gift Card Market to Reach US$1,906.2 Bn by 2032 | Digital Gifting Trends Fuel Global Growth - Persistence Market Research

The gift card landscape is on the brink of a major upswing. According to a comprehensive study by Persistence Market Research, the global gift card market is projected to reach US $712.5 billion in 2025, then climb to approximately US $1,906.2 billion by 2032, reflecting a healthy compound annual growth rate (CAGR) of 15.1% over the forecast period.

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Drivers of Growth

1. Convenience and personalization at the forefront
Consumers today expect gifting to be simple, flexible, and tailored. Gift cards deliver precisely that-whether physical cards handed over or digital versions sent via mobile. Rising demand for convenient, secure, and personalized gifting options is a major growth driver.
2. Digital payments and e-commerce tailwinds
The shift toward mobile wallets, digital payments, and online shopping is powering gift card usage. E-gift cards in particular are gaining ground because they can be delivered instantly, used via mobile, and integrated with loyalty programs.
3. Brand & merchant strategies: engagement + loyalty
Rather than just a gift solution, gift cards are increasingly being used by brands and merchants as part of customer-engagement strategies. They tie into loyalty programs, are used as corporate rewards, and help boost brand interaction. The business end-user segment is expanding rapidly as organizations adopt gift cards for promotions and incentives.

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Market Segments & Trends

Card Type:
• Physical gift cards remain dominant, accounting for over 54% of market share in 2025. They offer a tangible gifting experience, which many consumers still value.
• E-gifting (digital gift cards) is the fastest-growing segment due to its immediacy, flexibility, and mobile integration that appeals to tech-savvy consumers.
Price Range:
• Low-value cards (under US$200) are expected to dominate, representing over 60% share in 2025. Their affordability makes them ideal for casual, frequent gifting occasions.
• Medium-value cards (US$200-400) are growing significantly as corporate gifting and higher-end personal gifting become more common.
Sales Channel:
• Offline channels (stores, physical retail) still account for over 55% share in 2025, owing to instant availability and personal assistance.
• Online channels are growing at the highest rate, driven by the convenience of digital purchases, instant delivery, and integration with wallets and apps.
End-user:
• Individual consumers are expected to hold over 64% of the market share in 2025, as they choose gift cards for birthdays, holidays, and special occasions.
• Businesses (SMEs, large enterprises) are emerging as fast-growing end-users-leveraging gift cards for employee incentives, loyalty programs, and customer rewards.

Regional Insights

North America:
In 2025, North America is projected to capture over 37% of the global gift card market, backed by advanced digital infrastructure, mobile payment adoption, and strong loyalty and engagement programs.
Asia-Pacific:
The region is expected to register the highest CAGR (approximately 18.6%) over the forecast period. Growth is driven by rising smartphone penetration, digital payments, increasing disposable incomes, and e-commerce expansion.
Europe and Other Regions:
Europe's growth is steady, with an emphasis on sustainability (e.g., recyclable card materials) and strong regulation around consumer protection. Emerging markets (Latin America, Middle East & Africa) provide additional upside, although infrastructure and regulation may limit short-term potential.

Opportunities & Strategic Considerations

• Omni-channel integration: A hallmark opportunity is blending physical and digital, online and offline experiences. The data show more than half of online-bought cards are redeemed in store, and a significant portion of in-store cards get redeemed online.
• Technology-enabled innovations: Use of AI for personalization, blockchain for fraud prevention, integration with wallets and apps, and custom-branded cards are key differentiators.
• Corporate gifting programs: With businesses increasing their use of gift cards for employee rewards, customer incentives, and brand promotion, this segment provides a strategic growth avenue.
• Emerging market expansion: Regions such as Asia-Pacific are just starting to unlock the potential of digital gifting. Firms entering early with mobile-first, localized solutions may gain advantage.

Challenges & Risks

• Fraud and security concerns: Gift cards face risks of misuse, tampering, theft, and fraud due to their anonymity and ease of transfer.
• Regulatory and compliance burden: Varying rules around expiry dates, fees, KYC, and consumer protections complicate global scaling.
• Physical card fatigue: While physical cards remain large in share, their production and logistics create environmental concerns. Digital alternatives are increasingly preferred.
• Differentiation & value perception: As gift cards become commonplace, brands must ensure real perceived value and emotional relevance beyond convenience.

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Outlook & Strategic Takeaways

Given the projected leap from US$712.5 billion in 2025 to US$1,906.2 billion by 2032 (CAGR 15.1%), the gift card market presents compelling opportunities. Companies should:
• Prioritize digital and mobile-first card solutions.
• Strengthen fraud detection and regulatory compliance frameworks.
• Develop omni-channel redemption capabilities.
• Leverage data and AI for personalization and upselling.
• Expand into corporate and B2B channels.
• Tap into emerging markets with localized offerings.
• Embrace sustainability by promoting digital and eco-friendly cards.

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In summary, the global gift card market is poised for dynamic growth. From a baseline of US$712.5 billion in 2025, it is forecast to nearly triple to US$1,906.2 billion by 2032-driven by digital transformation, evolving consumer behavior, and innovative engagement strategies. Businesses that invest early in technology, personalization, and customer experience will be best positioned to capture this booming opportunity.

About Persistence Market Research:

At Persistence Market Research, we specialize in creating research studies that serve as strategic tools for driving business growth. Established as a proprietary firm in 2012, we have evolved into a registered company in England and Wales in 2023 under the name Persistence Research & Consultancy Services Ltd. With a solid foundation, we have completed over 3600 custom and syndicate market research projects, and delivered more than 2700 projects for other leading market research companies' clients.

Our approach combines traditional market research methods with modern tools to offer comprehensive research solutions. With a decade of experience, we pride ourselves on deriving actionable insights from data to help businesses stay ahead of the competition. Our client base spans multinational corporations, leading consulting firms, investment funds, and government departments. A significant portion of our sales comes from repeat clients, a testament to the value and trust we've built over the years.

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